PMI computes its net income (loss) per share in accordance with ASC Topic 260, Earnings Per Share (“ASC Topic 260”). Under ASC Topic 260, basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period and excludes the effects of any potentially dilutive securities.

PMI’s net income (loss) per share is calculated using the two-class method in accordance with ASC Topic 260. The two-class method allocates earnings that otherwise would have been available to common shareholders to holders of participating securities. Management considers all series of our Convertible Preferred Stock to be participating securities due to their rights to participate in dividends with Common Stock. As such, earnings allocated to these participating securities, which include participation rights in undistributed earnings, are subtracted from net income to determine total undistributed earnings to be allocated to common stockholders.

All participating securities are excluded from basic weighted-average common shares outstanding. Prior to any conversion to common shares, each series of Prosper’s Convertible Preferred Stock is entitled to participate on an if-converted basis in distributions of earnings, when and if declared by the Board of Directors (the “Board”), that are made to common stockholders and consequently, these shares were considered participating securities. During the year ended December 31, 2025, 2024 and 2023, certain shares issued as a result of the early exercise of stock options which are subject to a repurchase right by PMI were entitled to receive non-forfeitable dividends during the vesting period and consequently, are considered participating securities.


	December 31,
	2025		2024		2023
Numerator:
Net Loss	$	(35,702)	$	(54,079)	$	(106,462)


Denominator:
Weighted average shares used in computing basic and diluted net loss per share	77,860,750		77,226,337		76,092,569





Net Loss Per Share – Basic and Diluted	$	(0.46)	$	(0.70)	$	(1.40)

The following common stock equivalents were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been anti-dilutive (number of shares):


	December 31,
	2025	2024	2023
Excluded Securities:
Convertible Preferred Stock issued and outstanding	209,979,779	158,365,655	158,365,655
Stock options issued and outstanding	77,957,017	82,695,982	80,863,096


Warrants issued and outstanding	705,349	705,349	1,080,349
Series E-1 Convertible Preferred Stock warrants	35,544,141	35,544,141	35,544,141
Series F Convertible Preferred Stock warrants	126,106,580	177,720,704	177,720,704
Total Excluded Securities	450,292,866	455,031,831	453,573,945